[ad_1]
The Indian crypto industry and investors are looking for a revival as the price of bitcoin is heading towards its all-time high level of $69,000. The market in India has been dormant since the new tax regime came into force last year.
Balaji Srihari, Business Head of CoinSwitch, said, “In the last month, our trading volumes have surged by 40 per cent. In just the last two weeks, the number of users in profit has increased by over 80 per cent.”
CoinDCX, another major exchange, has seen volumes increase five times from the beginning of February at $5 million in spot to $25 million on February 28. The exchange’s co-founder, Sumit Gupta, said, “We have seen an increase in the average age of investors from 25 years earlier to 30 years, indicating that smart and mature investors have now entered the market.”
Siddharth Sogani, MD of CREBACO, said, “The primary driver behind Bitcoin’s recent surge is the acceptance of Exchange-Traded Funds (ETFs) by the US Securities and Exchange Commission (SEC). With major financial institutions such as BlackRock, Vanguard, Valkyrie, VanEck, and Fidelity launching their ETFs, the cumulative inflow of institutional money into Bitcoin through these ETFs has reached $41 billion, with a significant portion of this inflow occurring in the past two months.”
Last week, when Bitcoin price reached $60,000, in a single day these institutions purchased 10,050 Bitcoins against a total daily production of 900 Bitcoins, indicating their appetite and their view of the crypto market.
Another significant factor contributing to Bitcoin’s upward momentum is the impending halving event. Every four years, Bitcoin production is programmed to halve, and in the past, in 2012, 2016, and 2020, it has happened, and the market has seen a rally pre- and post-halving of production. The halving event is expected around April 20th, which will reduce miner rewards from 6.25 to 3.125 Bitcoin.
Gupta said that they were investing heavily in their technology and infrastructure and forging strategic partnerships to ensure leadership in the crypto market.
Going forward, falling production post the halving event and difficulty in mining are expected to result in Bitcoin prices rallying further. CREBACO analysis says, “The total supply of Bitcoin is capped at 21 million, out of which 19.64 million are already mined. In the total circulating supply, approximately 4 million Bitcoins are lost forever, and 5 to 7 million Bitcoins are locked in cold storage wallets. Hence, the actual liquid supply of the asset class is going down every day as more and more people are buying it, along with institutions such as BlackRock.” Sogani expects the Bitcoin prices to reach the $100,000 to $150,000 level by the end of 2024.
However, Sogani added that with the government’s move asking offshore exchanges to register with the Financial Intelligence Unit of India to continue offering their services in India, the government should also consider regulations for Indian crypto investors.
First Published: Mar 06 2024 | 9:51 AM IST
[ad_2]
Source link